I just looked into the site as well, sounded interesting.
Until i did some quick google research (like you should have done OP you lazy ass)
http://www.gadgetell.com/tech/comment/pay-to-bid-meet-swoopocom/P0/
And they are right.
I went to the site and watched one of their auctions and holy shit its never ending.
Just go and look at an auction that ends in like under a min.
When it goes near the end a person place a bid and it raises the clock 15 sec and each bid after that adds 15 more and so on.
Its just goes on and on and on and on and aHHHHHH.
For god sakes a auction i first came to was at 0:00:13 seconds left and 1 hour later it still hadn't ended yet.
That means a shit load of people are sitting around spamming 1$ bids (yes a single bid cost 1$) and they only have a slim chance of winning.
So at the end they probably spend hundreds of dollars worth of bids on a 80$ item and they probably didn't even win, you had to stop bidding because they passed out or something.
They play on people stupid enough to get suck in and go "ohh a bid only 1$" until they have used a couple hundred of them without realizing it because they are focus on the prize.
Also they need alot of members to be active so that they can keep raising the pool.
On the flip side you do have a chance to get a expensive prize and it only cost you a a few bids/dollars.
If your lucky and you jump on the wagon right when everyone else had give up due to them going dead broke.
But chances of that happening is like hitting a lottery.
This is exactly like gambling.

this .... ill stick to ebay for at least they dont flat out robs your ass.